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Bill

HB 1004

Income tax, state; creates child tax credit.

2026 Regular Session Introduced by Kathy Tran

Virginia bill creates state income tax credit for dependent children, reducing taxpayer liability but lowering projected state tax revenue.

Subcommittee recommends laying on the table (7-Y 3-N)
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Bill Summary · HB 1004

Legislative bill overview

HB 1004 would establish a state income tax credit for families with dependent children in Virginia. The bill creates a tax benefit mechanism to reduce the state income tax liability of eligible taxpayers based on the number of qualifying children they support.

Why is this important

Child tax credits directly affect household finances for working families and can influence state revenue collection and budget priorities. The fiscal impact statement suggests measurable economic consequences, making this relevant to both family tax planning and state revenue forecasting.

Potential points of contention

  • Revenue impact: The fiscal impact statement indicates the credit would reduce state tax revenue; debate likely centers on whether Virginia can afford this reduction or should prioritize other spending
  • Design parameters: Questions remain about income eligibility thresholds, credit amount per child, and age limits—these determine who benefits and the overall cost
  • Credit structure: Whether the credit is refundable (families can receive payments exceeding taxes owed) versus non-refundable affects its value to lower-income families

Compiled from official sources — confirm details with the bill’s official record.

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